Quarterly report pursuant to Section 13 or 15(d)

Business Combination

v3.22.4
Business Combination
9 Months Ended
Dec. 31, 2022
Business Combination  
Business Combination

2.    Business Combination

On September 7, 2022, the Company completed the acquisition of the assets of Dearman & Dearman PT LLC (“Dearman LLC”), a physical therapy practice, for a cash purchase price of $215,000. The Company is rebranding the physical therapy clinic (“Tower Aquatic”) as a specialized neuro-recovery center to showcase Bionik’s technology and solutions by providing treatment to patients with stroke, brain and spinal cord injuries, among its current service offerings.

The acquisition qualified for purchase accounting treatment under Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, whereby the purchase price was provisionally allocated to the assets acquired and liabilities assumed based upon their estimated fair values on the acquisition date of September 7, 2022:

    

Tower Aquatic

Acquisition

Total consideration paid

$

215,000

Estimated fair value of assets acquired:

 

  

Property and Equipment

 

79,448

ROU Asset

 

267,429

Lease Liability

 

(267,429)

Tradename and Trademarks, net

 

36,000

Goodwill

 

99,552

$

215,000

The Company incurred $52,000 of acquisition-related costs to complete the transaction including legal, valuation and closing fees. These expenses are included in the Condensed Consolidated Statements of Operations for the nine months ended December 31, 2022 as general and administrative operating expenses. The Relief from Royalty Method was relied upon to value the Trade Names and Trademarks. Because of the licensing appeal of this asset, the benefit of ownership as the “relief” from the royalty expense was estimated, that would be incurred in the absence of ownership. Unaudited proforma consolidated financial information for the acquisition have not been included as this acquisition is not significant.